What are the allied functions of ERP?

The functions of ERP project are both direct and indirect. It is possible to measure the effect of the direct functions very easily. Some of them include saving money on huge margins, proper communication and avoiding procedural delays. However when it comes to indirect functions most of them are not visible to the naked eye. They can be easily observed when a person gets more and more conversant with ERP process.

Some of them are as follows:

Enhances flexibility

Organizations followed rigid procedures and formalities prior to ERP intervention. One had to seek permission to view the details or data of the other department in the same company. This had to be routed through departmental heads. Of course there was nothing wrong because confidentiality had to be maintained at the interdepartmental levels itself in order to ensure the security of data. With the advent of ERP this practice has been given a go by. Whatever a person needs can be immediately accessed by him subject to the delegated authority and essentiality. ERP function has thus helped individuals.

Improves Quality

ERP support has vastly helped to improve the quality of services and products offered by the companies. ERP has been instrumental in identifying the areas for improvement In the event of speeding and improving the manufacturing process or other core functions of the company. This has greatly helped to improve the over all quality. For example in the course of implementing ERP software the company would have found some obsolete practice. They can devise a novel and productive measure in consultation with the ERP vendor which will double the benefits given the ERP software implementation. Thus ERP project helps to identify the existing mistakes and improve upon them in a better manner. The ERP function will accrue only if ERP is carried properly in an organization.

Economizes the resources

ERP support will help to save manpower, time and money not only on a large scale but also in the case of many sub process. During the course of ERP implementation the company can identify many areas that where resources are not properly put in use. This will help the company to decide on them and devise a suitable measure to properly use those resources. For E.g. during the course of ERP implementation the company can get to know the misallocation of the resources due to reasons like wrong organizational structure and procedures. These would not have been otherwise possible but for ERP function.

Helps decision making

ERP support has increased the autonomy and thereby the process of decision making process becomes easy in departments. Formerly departments had to get the consent and consensus from one another before finalizing or processing the end information. ERP has eliminated this need in the right time. Individual departments can function like separate entities (with good faith) because they can access the information required from other departments from the system in their table.

Conclusion

These ancillary functions need not necessarily be unique for every organization. Some organizations might experience lesser and some might expect more. It depends on the nature of the organization and how effectively they have made use of ERP project.

How the industry React to ERP?
How customers perceive ERP?
Making the right choice among the different ERP Packages
What are the benefits of an ERP System?
The commercial modalities of ERP
Knowing the ERP Markets
Analyzing ERP failures in Hershey
Choosing the appropriate ERP Vendor
ERP failures and manual actions in Signal International
How the industry React to ERP?
Return on investments for ERP
ERP Accounting Software - Is It For My Business?
Business Analysts

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